A business selling across Canada faces three separate sales tax systems: the federal Goods and Services Tax (GST), the Harmonized Sales Tax (HST), and Provincial Sales Tax (PST). Each carries different rates, different credit rules, and different registrations. The tax you charge depends on where your customer is, not where you sit. Get the province wrong and you either overcharge buyers or under-remit to the government.
This guide breaks down all three, with current 2026 rates for every province and territory. The official CRA GST/HST rate calculator, run by the Canada Revenue Agency (CRA), confirms every figure below.
What Are GST, HST, and PST in Canada?
GST is the 5% federal Goods and Services Tax charged everywhere in Canada, per the CRA. HST, the Harmonized Sales Tax, bundles that 5% federal tax with a provincial portion in five provinces. PST, or Provincial Sales Tax, is a separate tax run by four provinces, including Manitoba’s Retail Sales Tax (RST) and Quebec’s Quebec Sales Tax (QST) variants. Only GST is truly nationwide.
What Is the Difference Between GST, HST, and PST?
The difference comes down to three things: who administers the tax, whether businesses recover it, and where it applies. GST and HST are federal, administered by the CRA, and fully recoverable through input tax credits. PST and RST are provincial and usually not recoverable. QST is provincial but recoverable like GST/HST.
| Tax | Rate | Input credits | Administrator | Registration |
|---|---|---|---|---|
| GST | 5% | Yes (ITCs) | CRA (federal) | Federal |
| HST | 13%–15% | Yes (ITCs) | CRA (federal) | Federal |
| PST / RST | 6%–7% | Generally no | Provincial (BC, SK, MB) | Provincial |
| QST | 9.975% | Yes (ITRs) | Revenu Québec | Provincial |
Source: CRA and Revenu Québec, 2026.
What Are Canada’s Sales Tax Rates by Province in 2026?
Canada’s combined sales tax rates run from 5% to 15% in 2026, per the CRA. Alberta and the three territories charge only the 5% GST. New Brunswick, Prince Edward Island, and Newfoundland and Labrador sit at the 15% top. Alberta is the only province with no provincial sales tax.
| Province/Territory | Tax type | Federal + provincial | Combined | Source |
|---|---|---|---|---|
| Alberta | GST only | 5% + none | 5% | CRA calculator |
| Yukon | GST only | 5% + none | 5% | CRA calculator |
| Northwest Territories | GST only | 5% + none | 5% | CRA calculator |
| Nunavut | GST only | 5% + none | 5% | CRA calculator |
| Saskatchewan | GST + PST | 5% + 6% | 11% | CRA calculator |
| British Columbia | GST + PST | 5% + 7% | 12% | BC gov / CRA |
| Manitoba | GST + RST | 5% + 7% | 12% | CRA calculator |
| Ontario | HST | 5% + 8% | 13% | Ontario.ca / CRA |
| Nova Scotia | HST | 5% + 9% | 14% | CRA Notice 342 |
| Quebec | GST + QST | 5% + 9.975% | 14.975% | Revenu Québec |
| New Brunswick | HST | 5% + 10% | 15% | CRA calculator |
| Prince Edward Island | HST | 5% + 10% | 15% | CRA calculator |
| Newfoundland and Labrador | HST | 5% + 10% | 15% | CRA calculator |
Nova Scotia now charges 14% HST, down from 15%, effective April 1, 2025, after the province cut its provincial portion from 10% to 9%, per CRA Notice 342. Many competing pages still show 15%. New Brunswick, Prince Edward Island, and Newfoundland and Labrador now hold the 15% ceiling alone.
Which Provinces Have PST vs HST?
Five provinces charge HST, four charge a separate PST-type tax, and four regions charge only the 5% GST, per the CRA. The split matters because HST is recoverable and federally run, while most PST is a standalone provincial cost.
- HST provinces: Ontario (13%), New Brunswick (15%), Nova Scotia (14%), Prince Edward Island (15%), Newfoundland and Labrador (15%).
- PST-type provinces: British Columbia (7% PST), Saskatchewan (6% PST), Manitoba (7% RST), Quebec (9.975% QST).
- GST-only (5%): Alberta, Yukon, Northwest Territories, Nunavut.
How Do Input Tax Credits (ITCs) Work?
Input tax credits (ITCs) let registered businesses reclaim the GST/HST they pay on business inputs, so the tax passes through to the final consumer. A business charges GST/HST on its sales. It subtracts the GST/HST paid on its purchases. It remits only the difference to the CRA. The end buyer bears the full cost.
PST works differently. In British Columbia, Saskatchewan, and Manitoba, PST paid on most business inputs is not recoverable, so it becomes a real margin cost, per British Columbia’s PST rules. Quebec’s QST allows input tax refunds (ITRs) like GST/HST, per Revenu Québec, so it does not cascade.
How Do GST, HST, and PST Apply to a Real Purchase?
The tax stacks differently by province. A $1,000 laptop costs $1,130 in Ontario, $1,120 in British Columbia, and $1,050 in Alberta, using the CRA rates confirmed in the table above.
| Province | Tax applied | Total on a $1,000 laptop |
|---|---|---|
| Ontario | 13% HST | $1,130 |
| British Columbia | 5% GST + 7% PST | $1,120 |
| Alberta | 5% GST | $1,050 |
A business buyer recovers the full $130 HST in Ontario as an ITC. In British Columbia, only the $50 GST is recoverable; the $70 PST sticks as a cost. In Alberta, the $50 GST is fully recoverable, so the effective cost matches the pre-tax price.
Who Needs to Register for GST/HST in Canada?
You must register for GST/HST once your taxable supplies pass $30,000 over four consecutive calendar quarters, per the CRA’s small-supplier rules. Crossing $30,000 in a single quarter triggers registration immediately. Below the threshold you are a small supplier and can register voluntarily to claim ITCs. The threshold is $50,000 for public service bodies.
Do You Need Separate Provincial Registrations?
Yes. British Columbia, Saskatchewan, Manitoba, and Quebec each run their own registration, separate from federal GST/HST, per their provincial revenue authorities. A business selling into several of these provinces may hold multiple registrations. Provincial thresholds vary and should be confirmed with each authority before you register.
How Often Do You File GST/HST Returns?
Filing frequency depends on your annual taxable supplies, and GST/HST returns with payment are generally due one month after the reporting period ends, per the CRA. Annual filers face different deadlines. The CRA assigns a reporting period based on revenue, though you can often elect to file more often.
| Annual taxable supplies | Assigned filing frequency | Source |
|---|---|---|
| ≤ $1.5M | Annual | CRA |
| $1.5M–$6M | Quarterly | CRA |
| > $6M | Monthly | CRA |
Do Non-Resident and E-Commerce Sellers Need to Collect Canadian Sales Tax?
Often yes, even with no physical presence in Canada. Under place-of-supply rules, your customer’s province sets the rate, per the CRA. Non-resident digital-economy vendors register under a simplified GST/HST regime that took effect July 1, 2021, with its own $30,000 CAD threshold.
Do Marketplaces Collect GST/HST for Sellers?
Yes, in defined situations. Canada’s platform-operator rules make distribution platform operators like Amazon, eBay, and Etsy responsible for collecting GST/HST on sales by non-registered vendors, per the CRA’s digital economy rules. British Columbia and other PST provinces run their own marketplace rules, so confirm each one that applies to you.
How Commenda Helps With Canadian Sales Tax Compliance
Canada’s system rewards businesses that understand its structure. GST provides the 5% foundation everywhere. HST simplifies life in the five participating provinces by folding federal and provincial tax into one return. PST adds complexity, and in British Columbia, Saskatchewan, and Manitoba it lands as a real cost. Getting it right means knowing which taxes apply where, keeping proper records for input tax credits, and staying current with filing deadlines.
Commenda’s global indirect tax software tracks your GST/HST and provincial registrations, filings, and deadlines across every Canadian jurisdiction you sell into. It applies the correct province-level rate to each customer, monitors your revenue thresholds, and files at your assigned frequency. For quick rate checks, the sales tax calculator looks up rates; it reports rates, not your exposure.
Book a demo call to get a free review of your Canadian GST/HST and PST obligations.
